Most Traders Only Notice the Breakout After It Is Too Late
ASML is a good example of why price action matters.
Before the breakout, the stock built what looks like a Minervini-style VCP.
The contractions were roughly:
-19.3%
-10.9%
-10.1%
-4.4%
That is volatility contraction.
Not perfect, but it clearly showed the characteristics of tightening up the right side of the chart.
The stock held near the upper part of the base, tightened up, and then broke through the pivot area around $1,545.
Volume dried up on the final contraction, and demand started coming back in as price moved higher.
The breakout volume was not massive, so it was not textbook perfect, but the bigger point is that supply was drying up before the move.
That is the kind of setup growth traders should train their eyes to find.
Tighter price action.
Smaller pullbacks.
A setup that allows for tight risk and the potential to make multiples of what you risk.
